Comments on: How to figure out tax on tips as a waitress? http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/ Get Ready for Tax Season | Income Tax Filing | Tax Help | Tax Deductions | Online Tax Preparation | Business Taxes | Tax Shelters Tue, 12 Jan 2010 14:31:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: tro http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-64 tro Wed, 06 Jan 2010 15:05:10 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-64 large employers are required to allocate tips and this will vary by the type of employer they do withhold taxes on the reported tips large employers are required to allocate tips and this will vary by the type of employer

they do withhold taxes on the reported tips

]]> By: Dan B http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-63 Dan B Wed, 06 Jan 2010 12:48:03 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-63 You don't want to estimate or assume your tips. That could cause overpayment or underpayment of taxes due. You want to keep an accurate record of your tips. That way, if you don't make the $10 an hour, you may have enough proof to pay less tax. You don't want to force your employer to do anything. Set about 17% of your tips aside for taxes. I believe you have to make quarterly payments to the IRS on your income. That way, you don't have to send them a check for $3000 for taxes due at filing time + penalties for underpayment of estimated taxes. You can estimate taxes due because you have no tax tables yet. But don't estimate your tip income - count it. Check with www.irs.gov. You don’t want to estimate or assume your tips. That could cause overpayment or underpayment of taxes due. You want to keep an accurate record of your tips. That way, if you don’t make the $10 an hour, you may have enough proof to pay less tax. You don’t want to force your employer to do anything. Set about 17% of your tips aside for taxes. I believe you have to make quarterly payments to the IRS on your income. That way, you don’t have to send them a check for $3000 for taxes due at filing time + penalties for underpayment of estimated taxes. You can estimate taxes due because you have no tax tables yet. But don’t estimate your tip income – count it. Check with http://www.irs.gov.

]]> By: Sammy S http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-62 Sammy S Wed, 06 Jan 2010 08:33:39 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-62 Good places who may wants to help their employees, they add the tip in the w2 particularly in box 8. The following is the IRS guideline for tips and reporting: This chapter is for employees who receive tips. All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement. The value of noncash tips, such as tickets, passes, or other items of value are also income and subject to tax. Reporting your tip income correctly is not difficult. You must do three things. Keep a daily tip record. Report tips to your employer. Report all your tips on your income tax return. Check this out: http://www.irs.gov/publications/p17/ch06.html Good places who may wants to help their employees, they add the tip in the w2 particularly in box 8. The following is the IRS guideline for tips and reporting:
This chapter is for employees who receive tips.

All tips you receive are income and are subject to federal income tax. You must include in gross income all tips you receive directly, charged tips paid to you by your employer, and your share of any tips you receive under a tip-splitting or tip-pooling arrangement.

The value of noncash tips, such as tickets, passes, or other items of value are also income and subject to tax.

Reporting your tip income correctly is not difficult. You must do three things.

Keep a daily tip record.

Report tips to your employer.

Report all your tips on your income tax return.
Check this out: http://www.irs.gov/publications/p17/ch06.html

]]> By: the tax lady http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-61 the tax lady Wed, 06 Jan 2010 03:21:22 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-61 Did they tell you which program you are on? ATIP, TRDA and TRAC all work differently. Do you have a sample paystub you are willing to share with us? Usually tips are added in, fica/mc/withholding is calculated, the tips are subtracted out and your paycheck is done. Did they tell you which program you are on? ATIP, TRDA and TRAC all work differently.

Do you have a sample paystub you are willing to share with us? Usually tips are added in, fica/mc/withholding is calculated, the tips are subtracted out and your paycheck is done.

]]> By: Ralph T http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-60 Ralph T Wed, 06 Jan 2010 03:16:15 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-60 You have to keep a record of the tips you earn during your shift. The IRS has a record book you can pick up at a local office or you may be able to order online. It will come in handy at tax time to figure taxes on your actual tips. If your tips exceed the $10/hr.,you can just report tips at $10/hr. You have to keep a record of the tips you earn during your shift.
The IRS has a record book you can pick up at a local office or you may be able to order online.
It will come in handy at tax time to figure taxes on your actual tips.
If your tips exceed the $10/hr.,you can just report tips at $10/hr.

]]> By: Jss http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/comment-page-1/#comment-59 Jss Wed, 06 Jan 2010 03:10:49 +0000 http://www.setget.net/how-to-figure-out-tax-on-tips-as-a-waitress/#comment-59 You must keep daily record of tips, report tips to your employer and report on your tax return. You must keep daily record of tips, report tips to your employer and report on your tax return.

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